#6

In preparing its consolidated financial statements at December 31, 20X7, the following consolldation entries were Included in the consolldation worksheet of Powder Corporation: Powder owns 60 percent of Snow Corporation's voting common stock. On January 1, 20x7, Snow sold Powder a bullding it had purchased for $890,000 on January 1, 20X1, and depreciated on a 20-year straight-line basis. Powder recorded depreclation for 207 using straight-line depreclation and the same useful llfe and residual value as Snow. Required: a. What amount did Powder pay Snow for the bullding? b. What amount of accumulated depreciation did Snow report at January 1,207, prior to the sale? c. What annual depreciation expense did Snow record prior to the sale? d. What expected residual value did Snow use in computing its annual depreclation expense? e. What amount of depreclation expense did Powder record in 207? f. If Snow reported net Income of $75,000 for 207, what amount of Income will be assigned to the noncontrolling interest in the consolidated income statement for 207 ? g. If Snow reported net Income of $60,000 for 208, what amount of income will be assigned to the noncontrolling interest in the consolidated Income statement for 208